HF 2563

as introduced - 89th Legislature (2015 - 2016) Posted on 03/08/2016 04:12pm

A bill for an act
relating to campaign finance; requiring consent for certain political activities by
corporations, pension trust funds, and money market funds; providing penalties;
amending Minnesota Statutes 2014, section 211B.15, by adding a subdivision;
proposing coding for new law in Minnesota Statutes, chapter 211B.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2014, section 211B.15, is amended by adding a
subdivision to read:

new text begin Subd. 4a. new text end

new text begin Shareholder consent. new text end

new text begin (a) A corporation may not make a contribution,
expenditure, or independent expenditure for political purposes unless all shareholders of
the corporation have approved the contribution, expenditure, or independent expenditure
by majority vote, and each individual shareholder whose proportional share of the
corporation's profits will be used for the contribution, expenditure, or independent
expenditure has consented to use of their profit interest for that purpose. The vote and
consent procedure must be conducted according to the rules and bylaws of the corporation,
and may authorize a specific contribution, expenditure, or independent expenditure,
or may authorize a total budget for all contributions, expenditures, and independent
expenditures by the corporation in a calendar year.
new text end

new text begin (b) As used in this subdivision, "shareholders" means, in the case of a corporation
registered to do business in this state, all shareholders of the corporation residing in
the state; in the case of a corporation incorporated in this state, all shareholders of the
corporation; and in the case of a partnership registered to do business in this state, all
partners.
new text end

new text begin (c) Nothing in this subdivision authorizes a corporation to make a contribution,
expenditure, or independent expenditure that is not otherwise authorized by law.
new text end

Sec. 2.

new text begin [211B.155] CONTRIBUTIONS, EXPENDITURES, OR INDEPENDENT
EXPENDITURES BY PENSION TRUST FUNDS AND MONEY MARKET FUNDS.
new text end

new text begin Subdivision 1. new text end

new text begin Pension trust funds. new text end

new text begin A pension trust fund may not make a
contribution, expenditure, or independent expenditure for political purposes unless
all active members and beneficiaries have approved the contribution, expenditure,
or independent expenditure by majority vote, and each individual active member or
beneficiary whose proportional interest in the fund's earnings will be used for the
contribution, expenditure, or independent expenditure has consented to use of their
interest for that purpose. The vote and consent procedure must be conducted according to
the rules and bylaws of the fund, and may authorize a specific contribution, expenditure,
or independent expenditure, or may authorize a total budget for all contributions,
expenditures, and independent expenditures by the fund in a calendar year.
new text end

new text begin Subd. 2. new text end

new text begin Money market funds. new text end

new text begin A money market fund may not make a contribution,
expenditure, or independent expenditure for political purposes unless all shareholders of the
fund have approved the contribution, expenditure, or independent expenditure by majority
vote, and each individual shareholder whose proportional interest in the fund's earnings
will be used for the contribution, expenditure, or independent expenditure has consented
to use of their interest for that purpose. The vote and consent procedure must be conducted
according to the rules and bylaws of the fund, and may authorize a specific contribution,
expenditure, or independent expenditure, or may authorize a total budget for all
contributions, expenditures, and independent expenditures by the fund in a calendar year.
new text end

new text begin Subd. 3. new text end

new text begin Penalties. new text end

new text begin The penalties and remedy procedures provided in section
211B.15 related to political activity by corporations and individuals acting on behalf of a
corporation apply to violations of this section by a pension trust fund or money market
fund, and individuals acting on behalf of a pension trust fund or money market fund.
new text end

new text begin Subd. 4. new text end

new text begin Limitation. new text end

new text begin Nothing in this section authorizes a pension trust fund or
money market fund to make a contribution, expenditure, or independent expenditure that
is not otherwise authorized by law.
new text end

Sec. 3. new text begin EFFECTIVE DATE.
new text end

new text begin Sections 1 and 2 are effective the day following final enactment.
new text end